BlackRock Real Assets has closed its Asia Property Fund V (AFV), a value-add strategy that invests in real estate assets across Asia Pacific, at $1.175 billion in capital commitments, exceeding the fund’s target $1 billion.
“The successful fundraise demonstrates the strong confidence and trust our investors have placed in the investment capabilities and value offered by BlackRock. We are also extremely grateful for the re-up investments from our very loyal investor base, with whom we enjoy a close partnership. This excellent outcome is particularly welcome, given the travel restrictions experienced in 2020 and the levels of volatility in public markets, especially during the first half of 2020,” said John Saunders, Head of BlackRock Asia Pacific Real Estate.
“Our strategy remains tilted towards the conservative end of the value-add spectrum to build a portfolio of cash-generating assets offering a large spread between yield and funding costs. This has proven to be a very resilient strategy during 2020, during which we have seen rent collection, occupancy levels and leasing remaining very stable and consistently strong throughout the pandemic,” he added.
BlackRock Asia Property Fund V aims to primarily generate returns from repositioning, rebuilding, re-leasing and recapitalising real estate assets, with a primary focus on Japan, Australia, Singapore, China and Hong Kong.
”The strategy favours off-market, defensive, multi-let, high-yielding, institutional-grade assets in growing sub-markets, with correctable impairments for repositioning through fast turnover business plans,” said BlackRock in a statement.
“Asia Pacific real estate continues to provide both growth and diversification potential for global investors, and we are very excited about the investment window ahead of us. We benefit from on-the-ground sourcing, asset management and capital markets expertise throughout the region, and are well-positioned to identify proprietary, off-market transactions and seek favourable returns for our investors,” said Hamish MacDonald, Head of Investments for BlackRock Asia Pacific Real Estate.
“Asset prices have seen divergent trends across markets and sectors during the pandemic. Rapid acceleration in e-commerce services is driving up appetite for industrial and logistics assets, while the downturn in demand for office assets is presenting favourable entry points to selective markets in the region,” he added.